0
What is the main risk you face when you buy stocks as investments?
Wiki User
∙ 9y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Why are stocks high risk?
At the moment they are as stocks are volatile as the price is increasing and decreasing. however, long term wise most stocks are good investments
Is investing in bonds safe?
It is not a 100% safe but it is comparatively safer than investing in stocks. The main risk associated with investing in bonds is the fact that, if the bond issuer goes bankrupt, our money is gone. Apart from this, there is no major risk to our investment (Principal) part in bond investments.
What are the benefits of investing in mutual funds versus investing in individual stocks?
Mutual Funds are 'pools' made up of individual stocks. Therefore, the risk is spread over a wider base of investments.
What is an alternative investment?
It's an investment beyond the ordinarily known investments like stocks, forex, bank notes, coop, etc. Alternative investments include real estate, gold, and foreign investments. Risk is also very high in alternative investments (for example, real estate values can plummet after a housing boom).
What is the difference between stocks and mutual funds?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
Why are stocks high risk?
At the moment they are as stocks are volatile as the price is increasing and decreasing. however, long term wise most stocks are good investments
Are stocks high risk?
At the moment they are as stocks are volatile as the price is increasing and decreasing. however, long term wise most stocks are good investments
What is diversifying?
To diversify is to minimize your risk through a wide variety of investments. These investments may include bonds, stocks (large cap, small cap, foreign), mutual funds, cash and cash equivalents, and real estate. Diversified portfolios have less risk because the risk is spread out over many different types of investments.
Is investing in bonds safe?
It is not a 100% safe but it is comparatively safer than investing in stocks. The main risk associated with investing in bonds is the fact that, if the bond issuer goes bankrupt, our money is gone. Apart from this, there is no major risk to our investment (Principal) part in bond investments.
What is meant by the term micro cap stocks?
Micro cap stocks are generally those with a higher capital funding than other stocks. They typically are lower risk investments but may consequently produce a lower yield and return.
What are the benefits of investing in mutual funds versus investing in individual stocks?
Mutual Funds are 'pools' made up of individual stocks. Therefore, the risk is spread over a wider base of investments.
How can you maintain a balance between high risk and low risk investments?
Diversifying your investments will help maintain a balance between high risk and low risk investments.
Who was blamed for the Stock Market crash of 1929?
Politicians and the media often give the impression that stock market speculation is a "dirty word". The dictionary defines speculation as "an assumption of unusual business risk in hopes of obtaining commensorate gain". The truth is that there is risk in all stock market investments. There are no guarantees. Some investments are riskier than others, but let's not assume that there are some sure-fire investments that provide guaranteed gain. One area of speculation is "penny stocks". Penny stocks are stocks that sell for less than $5.00 per share. Some stocks truly cost mere pennies per share. Some investors like to buy penny stocks because some penny stocks will experience extra-ordinary increases in the stock price in relatively short periods of time. However, the risk in buying penny stocks is very high and many investors lose a great deal of money buying penny stocks. Risk is not limited to penny stocks. Once again, speculation should not be treated as a dirty word. It is indicative of risk that all investors have to accept when they buy stocks at any price.
What has the author Michael G Zahorchak written?
Michael G. Zahorchak has written: 'The art of low risk investing' -- subject(s): Investments, Stocks 'Favorable executions' -- subject(s): Prices, Stock exchanges, Stockbrokers, Stocks
What is an alternative investment?
It's an investment beyond the ordinarily known investments like stocks, forex, bank notes, coop, etc. Alternative investments include real estate, gold, and foreign investments. Risk is also very high in alternative investments (for example, real estate values can plummet after a housing boom).
Which stocks produce the highest rate of return with the least amount of risk?
There is no specific set of stocks that can guarantee the highest rate of return with the least amount of risk. Different stocks have varying levels of risk and potential returns. It is generally advised to diversify your portfolio and invest in a mix of low-risk stocks (e.g., blue-chip companies) and higher-risk stocks (e.g., emerging industries or growth stocks) to strike a balance between risk and return. Additionally, consulting with a financial advisor could help identify investments that align with your risk tolerance and financial goals.
Do foreign exchange and currencies trading programs actually work?
These types of investments do work, but they are typically high-risk, high-reward investments that are riskier than bonds and stocks. Learn more about the process at http://en.wikipedia.org/wiki/Foreign_exchange_market.
